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A.M. Best Revises Outlooks to Positive for Members of Union Mutual of Vermont Companies

[February 06, 2018]

A.M. Best Revises Outlooks to Positive for Members of Union Mutual of Vermont Companies

A.M. Best has revised the outlooks to positive from stable and
affirmed the Financial Strength Rating of A- (Excellent) and the
Long-Term Issuer Credit Ratings of "a-" of Union Mutual Fire
Insurance Company (Union Mutual Fire),the lead
property/casualty company and its wholly owned subsidiary, New
England Guaranty Insurance Company, Inc. (New England Guaranty), as
well as its mutual affiliate, Community Mutual Insurance Company
(Community Mutual), which are collectively referred to as Union
Mutual of Vermont Companies (Union Mutual). Union Mutual Fire and
New England Guaranty are domiciled in Montpelier, VT, while Community
Mutual is domiciled in Troy, NY.

The ratings reflect Union Mutual's balance sheet strength, which A.M.
Best categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk
management.

The revised outlooks reflect significant improvement in underwriting
results in recent years that have benefited from refinement in pricing
models, a more sophisticated policy administration system, stricter
underwriting guidelines and effective agency management. Additionally,
loss experience has been trending positively, while pretax operating
income and corresponding return measures have strengthened materially.
Although currently assessed atadequate, A.M. Best expects sustained
improvement in Union Mutual's operating performance.